What is a debt consolidation loan?
Debt consolidation is the process of taking out an equity loan that allows you to consolidate several individual debts into a single consolidated debt.
As an example say you have $75,000 outstanding on three credit cards with following amounts outstanding
Card #1: $25,000
Card #2: $15,000
Card #3: $35,000
The total amount of debt you owe on the three cards is $75,000. A typical monthly payment (based on 3% interest rate) would be $2,250.
Now imagine the above three debts are consolidated into a single equity loan for the same amount except the biggest difference is the interest rate that you pay. By consolidating the debts into a single equity loan, the same debt could be serviced with a monthly payment of $479.41 (assuming a 5.99% fixed rate loan). That’s a monthly savings of almost $1,800!
Now that you have all that “extra” money in hand, the smart thing to do to reduce your debt even quicker, would be to pay the savings back to the loan and therefore you bring your debt down quicker and potentially pay off the whole amount in 3 years. That’s the power of a debt consolidation equity loan.
The Advantages of a Debt Consolidation Loan
As you can see above there are some serious advantages to consolidating your debts if you are in that position.
- Lower interest rates save you money which in turn can help you eliminate your credit card debt, quicker
- Lower total monthly payments
- Replace many payments with a single monthly payment
- Easier to manage your household budgets with a single payment
What can we do for you?
Do any of the following apply to you?
- Overwhelmed by debts?
- Collectors always calling?
- Bills accumulating day by day?
- Mortgage payments behind?
- Property taxes behind?
If you answered ‘yes’ to any of the above questions, www.torontomortgagetrends.com can help you on the path to financial freedom. We can help you to consolidate your debt load into one monthly payment that is both affordable and will provide you with excess cash flow!
If you have any type of equity available, www.torontomortgagetrends.com can obtain a financial solution that allows you to pay off of your creditors and then deal with a single creditor who would provide a manageable monthly payment substantially lower than what you are presently paying.
What do I need to qualify for a Debt Consolidation loan
In order to see if you qualify for a Debt Consolidation equity loan call our mortgage specialist at www.torontomortgagetrends.com and get a personal consultation to go over your options. You must be a home owner to qualify.
For professional help, please contact our qualified mortgage specialist at www.torontomortgagetrends.com at 647.267.6338 to get a quick and easy free initial consultation. Alternatively you may apply online and we will contact you promptly.